Silver Price Outlook – Silver Continues to Look at Resistance

Silver Markets Technical Analysis

The silver market is up about a full percent during the early hours of Friday as we are approaching the $30 an ounce level in the spot market. That being said, there are still plenty of reasons to be a bit skeptical, and at this point in time, I remain so. The $30 level, of course, is a large round, psychologically significant figure that will attract a lot of options traders, but we are stuck between that 50-day EMA above and the 200-day EMA just below. We also have the previous trend line coming into the picture.

All in all, it does look like a situation that is tenuous at best. Interest rates in the United States continue to be rather aggressively strong. And if that ends up being the case longer term, that will work against silver. That being said, the interest rate markets have seen a little bit of a yield drop over the last couple of days, and you’ve got an exact opposite effect where silver rallies a bit.

Overall, though, silver is going to be dealing with inflation for a while. And while gold is generally thought of as the first place to hedge against inflation, silver is a little bit different in the sense that it’s a more industrial metal these days, although it is still a precious one. So, you get that push and pull effect constantly, which is part of what makes it so volatile. At this point, if we can recapture the 50 day EMA above, then I’m willing to start buying. Until then, in the immortal words of the world’s greatest technical analyst, Flavor Flav, “Don’t trust it.”

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